Protection without Protectionism? Foreign Investment Screening in Europe and the V4 Countries Today : A Comparative Analysis

European governments have shown growing interest in investment screening mechanisms in order to restrain access of non-EU investors to strategically sensitive industries. Most of this interest comes as recent high-profile takeovers by Chinese companies are increasingly perceived as detrimental for national security. While the practice of screening investments is not new, the strengthening of regulatory oversight in major European countries like the UK and Germany indicates a more challenging investment landscape for non-EU investors like Chinese companies. The EU also adopted a new framework to screen foreign investments, but it relies primarily on member state input and cannot veto actual acquisition plans on behalf of the community. While Slovakia has no dedicated investment screening mechanism, Czechia is in the legislative process of establishing one. Poland and Hungary, with generally similar screening processes, differ in their respective relations with China, spelling doubt over potential foreign and investment policy cooperation in the V4. This working paper provides an analysis of recent developments in investment screening regulations in Europe, with a special focus on the V4 countries.